Well - after yesterdays debacle, I have to confess that it was frustrating watching that losing trade play out. Especially, when I did have a winning trade setup on a shorter time frame that was passed due to what I explained. However, keep in mind that even with an 80% win rate that I have, 20% of the trades still lose. We cannot get too hung up on one bad trade. Part of being a successful trader, is learning from your losses.
As I had said in the earlier post, I would research the setup if a loss occurred to see what might be able to be improved next time. I did in fact find something significant, that had been overlooked. This particular pattern has been modified to incorporate this. Hopefully, I am getting some credit for being honest about losses when I take them. I find that many people do not do this. They lead people to believe that they just win on every trade.
The S&P 500 is a very volatile market, and one that is bound to hit you now and then.
3 comments:
Chris, one thing I really like about you (and there are many), is your openness about your losses. Everybody has losses. But not many talk about them. Warren Buffett talks candidly about his losses and mistakes as well. So you can put yourself in his camp now. Not a bad camp to be in, right?
Thanks, I needed a kind remark after that disaster yesterday LOL! I actually discovered in my research that the gap opening yesterday was in fact very bullish, and my prior analysis of it was incorrect.
The beauty of trading is that there is always more to learn. We need to learn from our mistakes. Sorry, the bond trading system has not done a trade, the patterns just are not lining up lately.
I still need to set up my trading account. Alaron seems the best price at $12 for an online rounturn. EDF Mann charges $99/month for a base fee plus a couple bucks for the trade. They are set up with a high fixed cost and low unit costs, for the frequent trader. Lind-Waldock is also pricey at $50 for an online roundturn.
So at least I've decided that Alaron is the company I will use.
I want to learn more about futures trading, and get my account set up, and in another month I should be ready to trade.
Perhaps you can cover on this blog, or in your next newsletter, how many trades I would need to do to break even on the trading costs, which consist of your service fee and the $50/roundturn Alaron fee.
Part of investing is knowing when to be OUT of the market. Investing doesn't mean you are always IN. I understand your discipline, knowing when to wait.
Americans are not too good at waiting. We want action, NOW. So I am okay with waiting for a good trade, as I am waiting for GLD to come down.
Schahrzad Berkland
(no longer anonymous)
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